Vehicle sales volume during the first seven months of the year reached 129,687 units, reflecting a 26 percent increase over the level registered in the same period last year, according to combined data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).
Figures for July alone showed sales of 20,730 units, 32 percent higher than that posted during the same period last year. July also posted the highest monthly sales volume to date.
The sales figures indicate rapid growth in demand for vehicles in the country, which the industry attributes to the country’s strong economic fundamentals and performance, which continue to buoy consumer confidence.
Based on the experience of neighboring countries belonging to the Association of Southeast Asian Nations (Asean), a $2,500 GDP per capita attainment will lead to an increase in buying power, which facilitates increased vehicle purchases.
Meanwhile, data from Toyota Financial Services Philippines Corporation (TFSPH), Toyota Motors Philippines’ (TMP) financing and leasing company, revealed that auto financing for the middle class market with a monthly income range of P20,000 to P100,000 saw significant increases in 2012 and 2013. From 28.9 percent in 2011, the market steadily grew to 54.4 percent in 2012 and 63.5 percent in 2013.
TFSPH’s data shows that the cited market, with an age range of 30 to 50 years old, is dominated by employed professionals, composing almost 50 percent of the segment, followed closely by self-employed individuals or business owners at 28 percent, and overseas Filipino workers at 10 percent.
According to TMP, it has long anticipated motorization to happen in the country and projects that the trend would open many opportunities in the Philippines. For its part, TMP aims to introduce products that cater to different market segments and tailor-fit financing services to make it easier for consumers to purchase their vehicles.
“Toyota has been carefully planning the introduction of new products and increasing the number of our dealers to better serve our customers. We have also continuously collaborated with our local supplier network to strengthen their respective operations so that we will all be ready to respond to the steadily increasing market demand,” TMP president Michinobu Sugata said.
Moreover, Sugata expressed excitement over the role that the country is expected to play in the Asean automotive market, especially with an outlook for vehicle sales close to 300,000 units in 2015.
The Philippines, as such, is seen as the next automotive growth area in Asean.
Accounting for such scenario, TMP underlined that local production operations will have an important role in its regional production network.
Sugata said that with continuous business growth, especially with the expansion of local manufacturing operations, Toyota will further contribute to the Philippine economy by generating more employment for Filipinos, contributing more taxes to the government, as well as facilitating the further development of parts suppliers and expansion of the dealer network.